Indiana municipal consolidations

Not many municipal entities so far have taken advantage of the Indiana state law that allows, and the Governor has encouraged even, consolidations. Umbaugh and Associates has written a two part article on the topic, click the link for the full article:

Is It Time To Consider Consolidation?

Part 2 in a series.

In our last issue we explored the advantages of consolidating with another governmental unit. Those advantages include improved management of growth and development, identifying and defending borders, developing a broader tax base, resource sharing and efficiency, enhanced ability to provide services, better coordination among taxing units and following the recommendations for better local government from the Kernan-Shepard report.

If you've reviewed the potential issues outlined in the first article and decided to pursue consolidation, the next step is to convene an ad hoc committee to discuss the merits of consolidation. The committee's findings should be presented to each governing body as you ask for approval to continue.

Next, create reorganization committees to break down key components for further discussion (i.e.-finance, public safety, ordinances, etc.).

Although many municipal finance and organizational consulting firms are contemplating the possibilities with their clients right now, we too would be pleased to meet on the subject. This is new territory for everyone, with the consolidation in Zionsville Indiana being the only real case study ... let's meet soon and work through the options.

Cender and Company

219-736-1800

Indiana DLGF memo on exempt debt

The Indiana Department of Local Government Finance sent out the following memo and charts to help local government organizations better understand the impact of the circuit breaker tax credits on exempt debt and the imperative directions concerning debt payments:

DLGF Memo

Related diagrams of explanation: Unit Payment of Debt Service and Distribution Method with and without exempt rates.

If you have further questions on the application of these memos to your municipal budget, levy, or tax rate please call our office at 219-736-1800 today ... ask for Dan Botich or Karl Cender.

If you want to subscribe to our free monthly newsletter please send an email to Steve Dalton and we'll add you to our opt-in list.

Indiana has exemplary record this year on tax bills

Property tax bills on-time in 85 counties, saving taxpayers millions in dollars
from (Department of Local Government Finance - Indiana)

INDIANAPOLIS (April 14, 2010) – Hoosier property taxpayers are seeing something in their mail they are not accustomed to seeing in the spring – their property tax bills. The Department of Local Government Finance today announced that for the first time since 2002, property tax bills in at least 85 counties will be mailed in spring, resulting in the normal May 10 due date.

Only two counties – Kosciusko and Owen –billed on-time in 2009, while no county achieved on-time billing in 2008. On-time tax bills mean lower costs for the State’s 2,691 cities, towns, townships, schools, libraries, and other special districts. “It took too long to get here, but a great cooperative effort has brought this process current,” Governor Mitch Daniels said. “The result is our cities, schools and libraries will get their funding in a timely manner and will no longer have to borrow while they wait on a check.”

(To facilitate on-time billing, the Department conducted at least part of the assessment work in three counties – Lake, LaPorte, and Porter.)

Late tax bills have been costly to local units of government, which rely on property tax revenue to operate. While a total dollar figure paid in interest due to late tax bills is not known, the Indiana Bond Bank stated that borrowing by local government units reached nearly $950 million in calendar year 2008, $518 million in 2009, and $133,000 so far for 2010. According to the Indiana Department of Education, schools borrowed over $42 million in calendar year 2008 and over $13 million in the first half of 2009.

“With more local government units returning to normal billing and collection cycles, the need by these entities to borrow will more than likely continue to return to normal levels as we have witnessed over the past year and a half,” State Treasurer Richard Mourdock, who serves has Chairman of the Indiana Bond Bank, said.

Delays in the past several years have been attributed to the change to the market value-based property tax system and the onset of “trending” – the updating of property values annually to reflect the property’s market value in use. Additionally, a statewide review of assessments resulted in several counties having to re-do work, and many counties experienced software changes to upgrade technology.

Now that the normal billing cycle has been restored, state and local officials are working to maintain the predictability for next year, setting a goal of on-time billing in 91 of the state’s 92 counties, a feat that has not happened since 2000.

Contact: Mary Jane Michalak, 317.232.3785, mmichalak@dlgf.in.gov or
Amanda Stanley, 317.233.9218, astanley@dlgf.in.gov

State revenues increase

From Department of Local Government Finance this morning:

One other interesting note, in case you haven't heard the news yet - State revenues came in above the forecasts for the first time in 17 months. In March, the state collected $908 million in taxes, up $7 million from March 2009. The collections were $2 million above the budget forecast and $48 million above the revised forecast, issued in December 2009. According to the Indianapolis Star, State Budget Director Chris Ruhl said, "I think a positive first step is getting back on target and projections." However, he has cautioned that it is too early to say the worst is over, so we must continue be prudent in our spending. According to the Star, " 'One month of reversing a trend is not enough to say we're going to start the spending spree again in Indiana,' Ruhl said. 'The goal remains the same: Spend within our means, protect Hoosier taxpayers, and maintain the size and scope of government within an affordable means.' "

On-time property tax bills in Porter County

Along with on-time property tax bills this year is -

Porter County’s new and enhanced website at www.porterco.org/pati or go to www.porterco.org and click on Tax Information. Read the General Information and learn about the site and the icons in the tutorial it will help a lot. Then click on Go To Public Access Tax Information Site You will be searching the county for any desired tax information or finding and paying your tax bill in no time at all.

You can find a record by Owner Name, Parcel Number, Address or Duplicate Number. Once you find your record you can view the Property Summary, Bill Details, Tax Summary for the last two years, Other Charges, Deductions and Receipts. The icons to the top right let you zoom in or out, pan, extend your search right or left, full extend, query properties around you and clear the map. Icons at the bottom allow you to pay by credit card, E-Check from you checking or savings account, print your bill, 3 year comparison or both and for the generally curious or commercial user the property record card.

This took place because of some real ingenuity, years of networking experience and the collaborative mindset, of Porter County’s Director of Information Technology, Sharon Lippens, who played the pivotal role in making this website happen and getting it at an affordable price for the citizens of porter County.

The program was acquired through the generosity of Allen County’s IT Department. The Programming and Consulting Firm of, ATOS, which performed the same work for Allen County, did the interfacing.

I know this website will cause Pat Pullara Chief Operating Officer/Government Affairs of GNIAR to jump for joy when I email her to broadcast the message to her membership that our website has arrived. GNIAR is instrumental in providing the county with valuable assessing information necessary for the County Assessor to do his work. This Website will go public Monday, April 5. It is a FREE service to all users with out limitations says, Lippens.

It is the culmination of effort from the Auditor Jim Kopp’s GIS Dept., Assessors John Scott’s Records Dept. and the Treasurer’s Office that brought the creation, integration, and payment services of the website to Porter County in a remarkable 30 working days. In the beginning some thought it couldn’t be done but, Porter County has an on-time tax bill and an on-time website.

"The project might be the Treasurer’s website but it’s the peoples tool where taxpayers, realtors, escrow companies, bankers, and title companies can access county tax records from anywhere in the world. It is a FREE service to all users with out limitations." Mike Bucko, Porter County Treasurer.

On behalf of all the taxing departments, “ We can’t promise to make paying taxes enjoyable but we can promise to work hard and together to make it easier”

Mike Bucko
Porter County Treasurer

DLGF Rushenberg resigns

>When I was appointed by Governor Daniels 15 months ago, he gave me one mission - return counties to on-time property tax billing. I was also directed to restore relationships and re-build the credibility of the Department with local government officials. As I write to you today, I can say with great pride that our mission has been accomplished.

Today, we will sign Clark County's budget order -- #83. I have told you weekly of our progress in my weekly email, so it will come as no surprise to you that we are 6 months ahead of where we were last year! The 83rd budget order was issued on September 9, 2009. We will issue #87 by the end of March! This is quite a feat - one that was accomplished through the hard work and dedication of everyone involved in the process - local and state officials. Kudos to each of you! Taxpayers in the vast majority of counties will receive on-time tax bills for the first time in several years. Mission accomplished. I wanted to fly a fighter jet onto the deck of the carrier USS Abraham Lincoln to show my appreciation to each of you for accomplishing our mission, but I don't know how to fly -- I was a JAG in the Air Force, not a pilot.

In addition to restoring the property assessment-to-tax billing cycle, the Department has built a reputation of excellence throughout the State - both in the accomplishments we have made and the customer service we provide. We have truly lived up to the Core Values I set for the Department when I was appointed in December 2008: Taxpayer First. Respect for Local Control. Excellence in All We Do.

Knowing this, I have decided it is time for me to move on, and I have resigned to seek other opportunities in the private sector. My resignation is effective today.

I have truly appreciated being a part of this Team, and wish each of you all the best. I will miss the friends I have made and will never forget what we accomplished together as a Team - local and state together. Mission accomplished.

To paraphrase Bing Crosby's character, Father O'Malley, from the film "The Bells of St. Mary's", if any of you ever need anything, just dial "O" for O'Malley.

March 2010 Update on Indiana Municipal Finance

Once in a while it is good to spend a few minutes looking at the big picture in Indiana municipal finance, some links we found that are worth reading and pondering:

• Hammond Indiana - Calumet Avenue Corridor Study - this is a survey for the public to give their input as the City of Hammond completes the plan for redeveloping the Calumet Corridor. (Via City of Hammond website). In the interest of full disclosure, Cender and Company is providing this analysis to the City, and you can see the background information and maps for this project at our website: Indiana Municipal Finance and Bond Consultants.
• The Indiana Department of Local Government Finance (DLGF) issues weekly updates on the status of property tax bills in all 92 counties. We keep an eye on these updates as well as working to assist many of the northern Indiana counties with compliance.
  
• Just across the border in Michigan's lake country, Redamak's opens today! (via #nwindiana twitter search)
• The Illiana Expressway gained steam once again, at least the Lake County portion, when lawmakers on both sides of the aisle worked to pass legislation. (via Times)

What stories are you watching today, in economic development and municipal finance, Indiana is ahead of many states ... but unemployment is hurting everyone.